A company operates two plants which manufacture the same item and whose total cost functions are C1 = 8+0.01q and C2 = 3+ 0.02q, where qi and q2 are the quantities produced by each plant. The total quantity demanded, q = q1 + q2 , is related to the price, p , by p = 50 – 0.02q. How much should each plant produce in order to maximize the company's profit? 91 = 92 Adapted from M. Rosser, Basic Mathematics for Economists, p. 318 (New York: Routledge, 1993).

A company operates two plants which manufacture the same item and whose total cost functions are C1 = 8+0.01q and C2 = 3+ 0.02q, where qi and q2 are the quantities produced by each plant. The total quantity demanded, q = q1 + q2 , is related to the price, p , by p = 50 – 0.02q. How much should each plant produce in order to maximize the company's profit? 91 = 92 Adapted from M. Rosser, Basic Mathematics for Economists, p. 318 (New York: Routledge, 1993).

Algebra for College Students

10th Edition

ISBN:9781285195780

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter12: Algebra Of Matrices

Section12.CR: Review Problem Set

Problem 37CR

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